In-Space

In-Space Missions Ltd

Last Updated: 2 weeks ago

Investment Thesis

In-Space Missions, now a subsidiary of BAE Systems, is a UK-based prime focused on designing, building, and integrating advanced small satellite missions and dual-use technologies ^[1]. Acquired in 2021, the company leverages its expertise in satellite platforms and rideshare services, notably the Faraday Dragon, to deliver defense, security, and civil space capabilities. With a recent grant from the UK Space Agency, In-Space is poised to further develop its reprogrammable, upgradeable satellite assets aimed at a sustainable space future ^[1]. Its BAE Systems backing provides financial stability and market access, particularly in government and defense sectors, positioning it as a strategic player in the rapidly evolving UK space ecosystem.

Key Differentiators

• Integration within BAE Systems provides significant access to defense and government contracts, market expertise, and financial backing, enabling ambitious projects like the Azalea satellite cluster ^[1].
• Focus on designing reprogrammable and upgradeable satellite platforms (e.g., Faraday-Bell, BAE Systems P-series) that enable extended lifetimes and variable mission applications, contributing to space sustainability ^[1].
• Development of specialized rideshare services like 'Faraday Dragon', targeting the Asia-Pacific region with ultra-low-cost end-to-end services for a broad customer base, including government and commercial entities ^[1].
• Expertise in developing and integrating dual-use technologies and payloads for communications, intelligence, imaging, and positioning, underpinning its strategic market position ^[1].

Risk Factors

• As a subsidiary of BAE Systems, In-Space's strategic direction and financial resources are managed by its parent company, potentially limiting independent agility in rapidly shifting market conditions.
• The company experienced a launch failure with the Prometheus-2 mission in January 2023, highlighting the inherent risks in space mission development and execution, though this was part of a joint effort with Airbus for Dstl ^[1].
• The disclosed annual revenue of $2.0M for In-Space Missions, while operating under a larger entity, indicates a relatively early stage for its standalone commercial service offerings, necessitating continued growth and scaling.

Rocket Lab Relationship

In-Space Missions is a confirmed Rocket Lab customer, having utilized the Electron launch vehicle for past missions, including one notable launch failure in July 2020 named 'Pics Or It Didn’t Happen' which carried a 75 kg payload. While this specific mission was unsuccessful, the engagement demonstrates In-Space's utilization of Rocket Lab for dedicated or rideshare launches, contributing to Rocket Lab's launch manifest and revenue ^[1]. Given the single documented launch failure and the company's ongoing development of multiple satellite projects, its likelihood as a repeat customer for launches is uncertain without further data on their mission cadence and specific launch needs. However, In-Space's focus on small satellite development and potential future constellation deployment (like Azalea or Faraday Dragon) aligns with the small launch market that Rocket Lab serves, validating Rocket Lab's position as a key enabler for emerging space companies. In-Space deploys missions of varying types, including technology demonstrations and payload integrations for data services, which positions them as a customer for various launch vehicle classes, potentially including future offerings from Rocket Lab.